Latest Blogs from SBS and Company LLP

    Understading BRR and its Principles

    Business Responsibility Report 

    ?NationalVoluntary Guidelines on Social, Environmental and Economic Responsibilities of Business – by MCA in July 2011 

    ?SEBICircular No. CIR/CFD/DIL/8/2012, dated 13/08/2012 

    ?Regulation 34 (2) (f) of SEBI (LODR) Regulations, 2015, dated 

    ?SEBICircular No. CIR/CFD/CMD/10/2015, dated 04/11/2015 

    ?SEBI(LODR) (Amendment) Regulations, 2015, dated 22/12/2015 

    Applicability 

    ?InitialList– Top 100 companies by Capitalisation at BSE and NSE (FY ending on or after 31/12/2012) 

    ?Subsequent List – Top 500 Companies by Capitalisation at BSE and NSE (Wef 01-04-2016)

    Sustainability Reporting

    ?GRISustainability Reporting Standards 2016 

    ?Accountability: AA1000 Series of Standards 

    ?CarbonDisclosure Project (CDP) tool and Framework 

    ?International Integrated Reporting Council (IIRC) International Framework 

    ?ISO26000 

    ?OECD:Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones

    ?Sustainability Accounting Standards Board (SASB) 

    ?UNGlobal Ten Compact Ten Principles 

    ?TheGreenhouse Gas (GHG) Protocol 

    ESG Norms 

    ?Environmental 

    ?Social 

    ?Governance

    9 Principles 

    ?Businesses should conduct and govern themselves with Ethics, Transparency and Accountability 

    ?Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle 

    ?Businesses should promote the well being of all employees 

    ?Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized. 

    ?Businesses should respect and promote human rights 

    ?Businessshould respect, protect, and make efforts to restore the environment 

    ?Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner 

    ?Businesses should support inclusive growth and equitable development 

    ?Businesses should engage with and provide value to their customers and consumers in a responsible manner 

    P1- Ethics, Transparency & Accountability 

    ?Businesses should develop governance structures, procedures and practices that ensure ethical conduct at all levels; and promote the adoption of this principle across its value chain. 

    ?Businesses should communicate transparently and assure access to information about their decisions that impact relevant stakeholders. 

    ?Businesses should not engage in practices that are abusive, corrupt, or anti- competition. 

    ?Businesses should truthfully discharge their responsibility on financial and other mandatory disclosures. 

    ?Businesses should report on the status of their adoption of these Guidelines as suggested in the reporting framework in this document.

    ?Businesses should avoid complicity with the actions of any third party that violates any of the principles contained in these Guidelines 

    P2- Safe and Sustainable Goods & Services 

    ?Businesses should assure safety and optimal resource use over the life-cycle of the product – from design to disposal – and ensure that everyone connected with it- designers, producers, value chain members, customers and recyclers are aware of their responsibilities. 

    ?Businesses should raise the consumer's awareness of their rights through education, product labelling, appropriate and helpful marketing communication, full details of contents and composition and promotion of safe usage and disposal of their products and services. 

    ?Indesigning the product, businesses should ensure that the manufacturing processes and technologies required to produce it are resource efficient and sustainable. 

    ?Businesses should regularly review and improve upon the process of new technology development, deployment and commercialization, incorporating social, ethical, and environmental considerations. 

    ?Businesses should recognize and respect the rights of people who may be owners of traditional knowledge, and other forms of intellectual property. 

    ?Businesses should recognize that over-consumption results in unsustainable exploitation of our planet's resources, and should therefore promote sustainable consumption, including recycling of resources. 

    P3- Promote well being of all employees 

    ?Businesses should respect the right to freedom of association, participation, collective bargaining, and provide access to appropriate grievance Redressal mechanisms. 

    ?Businesses should provide and maintain equal opportunities at the time of recruitment as well as during the course of employment irrespective of caste, creed, gender, race, religion, disability or sexual orientation. 

    ?Businesses should not use child labour, forced labour or any form of involuntary labour, paid or unpaid. 

    ?Businesses should take cognizance of the work-life balance of its employees, especially that of women. 

    ?Businesses should provide facilities for the wellbeing of its employees including those with special needs. They should ensure timely payment of fair living wages to meet basic needs and economic security of the employees. 

    ?Businesses should provide a workplace environment that is safe, hygienic humane, and which upholds the dignity of the employees. Business should communicate this provision to their employees and train them on a regular basis. 

    ?Businesses should ensure continuous skill and competence upgrading of all employees by providing access to necessary learning opportunities, on an equal and non-discriminatory basis. They should promote employee morale and career development through enlightened human resource interventions. 

    ?Businesses should create systems and practices to ensure a harassment free workplace where employees feel safe and secure in discharging their responsibilities. 

    P4- Respect interest and responsive to all stakeholders

    ?Businesses should systematically identify their stakeholders, understand their concerns, define purpose and scope of engagement, and commit to engaging with them. 

    ?Businesses should acknowledge, assume responsibility and be transparent about the impact of their policies, decisions, product & services and associated operations on the stakeholders.

    ?Businesses should give special attention to stakeholders in areas that are underdeveloped.

    ?Businesses should resolve differences with stakeholders in a just, fair and equitable manner 

    P5- Respect and promote human rights 

    ?Businesses should understand the human rights content of the Constitution of India, national laws and policies and the content of International Bill of Human Rights. Businesses should appreciate that human rights are inherent, universal, indivisible and interdependent in nature. 

    ?Businesses should integrate respect for human rights in management systems, in particular through assessing and managing human rights impacts of operations, and ensuring all individuals impacted by the business have access to grievance mechanisms. 

    ?Businesses should recognize and respect the human rights of all relevant stakeholders and groups within and beyond the workplace, including that of communities, consumers and vulnerable and marginalized groups. 

    ?Businesses should, within their sphere of influence, promote the awareness and realization of human rights across their value chain. 

    ?Businesses should not be complicit with human rights abuses by a third party. 

    P6- Protection of Environment

    ?Businesses should utilize natural and manmade resources in an optimal and responsible manner and ensure the sustainability of resources by reducing, reusing, recycling and managing waste.

    ?Businesses should take measures to check and prevent pollution. They should assess the environmental damage and bear the cost of pollution abatement with due regard to public interest. 

    ?Businesses should ensure that benefits arising out of access and commercialization of biological and other natural resources and associated traditional knowledge are shared equitably. 

    ?Businesses should continuously seek to improve their environmental performance by adopting cleaner production methods, promoting use of energy efficient and environment friendly technologies and use of renewable energy. 

    ?Businesses should develop Environment Management Systems (EMS) and contingency plans and processes that help them in preventing, mitigating and controlling environmental damages and disasters, which may be caused due to their operations or that of a member of its value chain. 

    ?Businesses should report their environmental performance, including the assessment of potential environmental risks associated with their operations, to the stakeholders in a fair and transparent manner. 

    ?Businesses should proactively persuade and support its value chain to adopt this principle. 

    P7- Influence on Public & Regulatory Policy 

    ?Businesses, while pursuing policy advocacy, must ensure that their advocacy positions are consistent with the Principles and Core Elements contained in these Guidelines. 

    ?Totheextent possible, businesses should utilize the trade and industry chambers and associations and other such collective platforms to undertake such policy advocacy. 

    P8- Support Inclusive Growth & equitable development

    ?Businesses should understand heir impact on social and economic development, and respond through appropriate action to minimise the negative impacts.

    ?Businesses should innovate and invest in products, technologies and processes that promote the wellbeing of society. 

    ?Businesses should make efforts to complement and support the development priorities at local and national levels, and assure appropriate resettlement and rehabilitation of communities who have been displaced owing to their business operations. 

    ?Businesses operating in regions that are underdeveloped should be especially sensitive to local concerns.

    P9- Provide value to the consumers in a responsible manner 

    ?Businesses, while serving the needs of their customers, should take into account the overall well-being of the customers and that of society. 

    ?Businesses should ensure that they do not restrict the freedom of choice and free competition in any manner while designing, promoting and selling their products. 

    ?Businesses should disclose all information truthfully and factually, through labelling and other means, including the risks to the individual, to society and to the planet from the use of the products, so that the customers can exercise their freedom to consume in a responsible manner. Where required, businesses should also educate their customers on the safe and responsible usage of their products and services. 

    ?Businesses should promote and advertise their products in ways that do not mislead or confuse the consumers or violate any of the principles in these Guidelines. 

    ?Businesses should exercise due care and caution while providing goods and services that result in over exploitation of natural resources or lead to excessive conspicuous consumption. 

    ?Businesses should provide adequate grievance handling mechanisms to address customer concerns and feedback. 

    GRI Standards - Overview 

    101 – Foundation 

    102 – General Disclosures

    103 – Management Approach 

    Economic Standards 

    201 – Economic Performance

    202 – Market Presence

    203 – Indirect Economic Impact

    204 – Procurement Practices

    205 – Anti Corruption

    206 – Anti Competitive Behaviour 

    Environmental Standards

    301 – Materials

    302 – Energy

    303 – Water

    304 – Biodiversity

    305 – Emissions

    306 – Effluents and Waste

    307 – Environmental Compliances

    308 – Supplier Environmental Assessment 

    Social Standards 

    401 – Employment

    402 – Labor/ Management Relations

    403 – OHS

    404 – Training & Education

    405 – Diversity and Equal Opportunities

    406 – Non Discrimination

    407 – Freedom of Association & Collective Bargaining

    408 – Child Labor; 409 – Forced or Compulsory Labor

    410 – Security Practices

    411 – Rights of Indigenous People

    412 – Human Rights Assessment

    413 – Local Communities

    414 – Supplier Social Assessment

    415 – Public Policy

    416 – Customer Health and Safety

    417 – Marketing and Labeling

    418 – Customer Privacy

    419 – Socio Economic Compliance 

    Integrated Reporting (IR) Framework (1/3) 

    ?SEBICircular No. SEBI/HO/CFD/CMD/CIR/P/2017/10, 06/02/2017 

    ?Regulation 4(1)(d) of SEBI LODR states "the listed entity shall provide adequate and timely information to recognised stock exchange(s) and investors”

    ?SEBICircular No. SEBI/HO/CFD/CMD/CIR/P/2017/10, 06/02/2017 

    ?IOSCOPrinciple 16 - there should be full, accurate and timely disclosure of financial results, risks and other information that is material to investors ´decisions. 

    ?International Integrated Reporting Council (‘IIRC’) Guiding Principles: 

    ?Strategicfocus and future orientation 

    ?Connectivity of information

    ?Stakeholderrelationships

    ?Materialityof Information

    ?Conciseness

    ?Reliabilityand completeness

    ?Consistencyand comparability 

    Integrated Reporting (IR) Framework (2/3) 

    ?FormsofCapita

    ?FinancialCapital

    ?Manufactured Capital

    ?Intellectual Capital

    ?HumanCapital

    ?Socialand Relationship Capital

    ?NaturalCapital 

    ?Applicability 

    ?Itisapplicable on Voluntary basis from the FY 2017-18 for the companies covered under BRR 

    ?Formsofreporting 

    ?Aspartof MDA Analysis Report, or

    ?SeparateAnnual Report as per IR Framework of IIRC

    ?Asagreen initiative, this report need to be hosted on website of the company and appropriate references may be given in the Annual Report of the Company

    Integrated Reporting (IR) Framework (3/3)

    Benefits of BRR (Triple-Bottom Line Approach)

    Triple Bottom Line approach – People, Planet and Profit

    1. Improved Reputation 
    2. Increased Employee Loyalty
    3. Helps the Organisation to refine its corporate vision or strategy
    4. Increased Consumer Loyalty
    5. Improvement in efficiency and Waste Reduction within the organisation
    6. Improved relationships with the regulatory bodies
    7. Monitoring Long Term risk and improving Long Term Risk management
    8. Other forms of cost saving within the organisation
    9. Improved measures in increase the long term profitability
    10. Improved access to capital
    11. Preferred Insurance rates
    Tags:

    Subscribe SBS AND COMPANY LLP updates via Email!